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Bloomberg
US stocks fluctuated near all-time highs and Treasuries were little changed as attention turned to a slew of data later in the week that will influence the Federal Reserve’s policy path. The dollar weakened.
The S&P 500 was little changed in the last full day of trading before an early close on July 3 and Thursday’s holiday. Data on private hiring, factory orders and the services sector are due on Wednesday, with June’s government jobs report coming the final day of the week. In company news, Nike Inc was mixed after entering the political fray by pulling themed shoes some deemed
offensive. Delta Air Lines rose after reporting preliminary results.
Wall Street started the week with a bang, as the S&P 500 Index posted records in the wake of a fresh trade truce between the US and China, though equities ended well below session highs. Attention now turns to the state of the economy and the looming start of earnings season for clues on how the trade wars have hit profits.
“There’s definitely a dampening effect happening throughout sentiment in the business and corporate world†from trade tensions, said Kerry Craig, a global strategist at JPMorgan Asset Management.
One or two central bank rate cuts could “steady the ship†and boost risk assets, though a prolonged cycle would suggest major weakness and prove damaging, he said.
The Stoxx Europe 600 Index extended a modest advance while UK shares climbed to the highest in nine months. UK gilts rallied as construction data disappointed. The euro edged higher after Bloomberg reported ECB policy makers don’t see a need to rush into a rate cut this month.
US notes nudged up with most government bonds in Europe, where the yield on two-year Italian debt briefly dipped below zero.
Chinese stocks were steady. Gold rebounded after tumbling on July 1.
Elsewhere, oil declined as investors weighed OPEC’s extension of output cuts into 2020. The Australian dollar strengthened after the central bank cut rates as expected and suggested a further cut may not be warranted.
Boris Johnson and Jeremy Hunt continue their campaign to be the next UK prime minister. US markets will close at 1 pm on Wednesday and all day Thursday for the Independence Day holiday.
The US jobs report is due on Friday and is projected to show non-farm payrolls rose by 164,000 in June, rebounding from 75,000 the month prior.
The S&P 500 Index fell less than 0.1 percent to 2,963.34 in New York. The Nasdaq 100 Index dropped 0.1 percent. The Stoxx Europe 600 Index climbed 0.2 percent to the highest in two months. The UK’s FTSE 100 Index jumped 0.5 percent to the highest in nine months. The MSCI Asia Pacific Index increased 0.4 percent to the highest in two months. The MSCI Emerging Market Index fell less than 0.05 percent, the largest fall in a week.
The euro gained 0.1 percent to $1.1297, the biggest rise in more than a week. The British pound fell 0.1 percent to $1.2628 to the weakest in two weeks. The Japanese yen strengthened 0.2 percent to 108.28 per dollar, the biggest increase in more than a week.
The yield on 10-year Treasuries declined less than one basis point to 2.02 percent.
Germany’s 10-year yield advanced less than one basis point to -0.36 percent.
Gold gained 0.5 percent to $1,391.32 an ounce, the largest rise in more than a week.